DB Capital Partners to assume management of Morgan Grenfell Private Equity

It has been announced that Morgan Grenfell Private Equity, the private equity business of Deutsche Asset Management, has reached the end of its suspension period as regards its Deutsche European Partners IV Fund (DEP IV) and that MGPE will now be integrated into the broad business of DB Capital Partners. MGPE has been very publicly under duress for some time. It has suffered since the sale in March 2000 of its interest in SLEC Holdings (the holding company for the Formula One motor sport racing franchise) to EM.TV in exchange for EM.TV stock, which later slumped in value dramatically. There have also been talks at MGPE, late last year and in the second quarter of this year, of a proposed management buyout to assert further independence from DB and start afresh under a new name. However these proved fruitless due to internal wrangling within Deutsche Bank, prompting their main proponent, Graham Hutton, the head of MGPE, to leave the company. Following his departure DEP IV was placed under a 90-day suspension order during which MGPE had to come up with an alternate finance plan. Following the absorption of MGPE into DB Capital Partners, DB Capital Partners is the only private equity vehicle at Deutsche Bank. MGPE’s portfolio will continue to be managed by the current team of MGPE directors, as will further investments from DEP IV; however, there are no plans at present to raise another fund and it is uncertain at the moment whether DB will look to raise third-party funds at any time in the future. Graham Clempson, DB Capital Partners’ European managing partner, will become chief executive of MGPE. Sir Robert Smith, previously chairman and chief executive of MGPE, will continue as vice chairman of Deutsche Asset Management.

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• Topics
• GPs
• DACH